AOL Leaps Into Music Biz With Spinner, Nullsoft Buy

Internet leader America Online has purchased Web radio pioneer Spinner.com and music technology company Nullsoft, the leading developer of Internet MP3 players. The stock-for-stock transactions, announced yesterday, are valued at $400 million by AOL.
AOL president Bob Pittman says the purchase of San Francisco-based Spinner.com will lift online music purchasing to the next level in the eyes of consumers by exposing them to a barrage of genres. Spinner.com offers 120 niche formats, serving 1.5 million users monthly, according to AOL. Dulles, Va.-based AOL will also develop live music coverage and custom-branded music services, via its AOL, AOL.com, CompuServe, Netcenter, and ICQ brands.
With its purchase of Nullsoft, AOL will be equipped to develop next-generation downloading equipment, which it will merge with Spinner.com's content and, again, utilize for its own brands. Nullsoft, the developer of the Winamp MP3 player and Shoutcast MP3 streaming audio system, is now based in Sedona, Ariz., but will relocate to San Francisco. Its products have 5 million users, AOL says.
It was unclear at deadline whether Spinner and Nullsoft will continue to operate as separate brand entities.
--Chuck Taylor, N.Y.


Grammophon Adds Two Key Executives

Universal Music Group has named Sabine Max as VP of marketing and Ruud De Sera as director of international at Deutsche Grammophon (DG) in Hamburg. According to Universal, the pair together replace former marketing director Rene Van Hulst, who exited last month along with VP of A&R Michael Fine (Bulletin, May 27). Max and De Sera report to Universal Classics & Jazz president Chris Roberts, in his role as acting DG president.
Max was DG label manager for Germany; De Sera joined the label earlier this year as a product manager after serving as marketing manager for classics and jazz at PolyGram Sweden.
A spokesman says Universal expects to announce a replacement for Fine in the near future.
--Mark Solomons, London


Clinton Orders Fed Entertainment Probe

President Clinton yesterday ordered a Federal Trade Commission/Justice Department probe into whether entertainment industries market violence to children. RIAA president/CEO Hilary Rosen responded in a statement, "The music industry does not market violence to children." She added that the industry "will continue playing a leadership role" to help tackle violence, "while the President apparently looks for headlines."
--Bill Holland, Washington, D.C.


Eurovision Winner Inks Deal Amid Copying Claims

EMI-Belgium has inked a deal to release the winning entry in the 44th annual Eurovision Song Contest, Charlotte Nilsson's "Take Me To Your Heaven," in all of Europe except Scandinavia and the U.K. The song, Sweden's entry in the May 29 contest in Jerusalem, has been released as a single in Scandinavia by Mariann Grammofon; at deadline, BMG was pursuing a deal to release it in the U.K.
Meanwhile, two songwriters have claimed that "Take Me To Your Heaven," composed by Mariann Grammofon studio manager Lars "Dille" Diedricson, copies their compositions. German producer David Brandes claims the song copies his "Don't Say We're Through," written in 1997 for dance act E-Rotic and recorded a year later by Bad Boys Blue as "Out Of The Blue." Diedricson denies through his record company ever hearing Brandes' song. Separately, Swedish composer Hans Lagerholm claims that "Take Me To Your Heaven" copies his "Tusen Och En Natt," which is the title of the Swedish version of the winning song. Lagerholm recorded the song as a demo at the peermusic studios in Stockholm; Peo Nylen, peermusic's creative managing director for Scandinavia, says the song was never pitched.
--Fred Bronson, London; Wolfgang Spahr, Hamburg


RIAA Names N2K Vet To Web Music Post

The RIAA has named Karen Allen as Internet music "evangelist." Allen, who will serve as a liaison for the trade group between member labels and the online music community, reports to senior VP of communications Susan Lewis. Allen previously headed marketing and events at N2K/Rocktropolis.


R. Kelly Dates Nixed

Amid reports that the plug has been pulled on R. Kelly's tour after only eight shows, a spokesperson for his label, Jive, acknowledges that "many of the dates have been postponed" and says new dates will be announced soon. Also on the bill were Foxy Brown, Nas, Deborah Cox, and Kelly Price; Busta Rhymes left the tour just before it started.
--Ray Waddell, Amusement Business


Artist Developments

V2 act Mercury Rev and Capitol act Sparklehorse embark on a 14-date club tour today in Chicago.


SFX Expands Theatrical Holdings With Livent Buy

SFX Entertainment has signed a definitive agreement to purchase the assets of financially troubled theatrical producer Livent Inc. The move expands SFX's presence in touring Broadway shows, a business it entered with its acquisition of PACE Theatrical. SFX CEO Mike Ferrel says about 20% of the company's business is theatrical.
SFX will acquire New York's Ford Center for the Performing Arts, Toronto's Pantages Theatre, and Chicago's Ford Center for the Performing Arts/Oriental Theatre. SFX also will assume rights to current Livent productions, including "Fosse," "Ragtime," and the Canadian production of "Phantom Of The Opera," as well as Livent shows in development. The deal, subject to approval by bankruptcy courts and regulatory authorities in the U.S. and Canada, is expected to close by Sept. 30.
--Ray Waddell, Amusement Business


CustomDisc Offers McLachlan Bonus

Fans who order Sarah McLachlan's album "Mirrorball" from CustomDisc.com by July 1 will be able to create a custom CD with unreleased tracks. Under the promotion, consumers can create a four-song disc for $4.99, choosing from eight live cuts, remixes, and B-sides. "Mirrorball" is due June 15 from Nettwerk/Arista.


Eddie Rosenblatt Joins Emusic Board

Former Geffen Records chief Eddie Rosenblatt has joined the board of directors for Emusic.com, the company formerly known as Goodnoise. In other news, Emusic has signed a licensing deal with the King Biscuit Entertainment Group. More than 60 complete albums will be released for digital download as part of the deal, including titles by America, Bachman Turner Overdrive, David Crosby, Iggy Pop, and Kansas.
--Brett Atwood, L.A.


Georgeson Confirmed As BMG VP In Asia

Frances Georgeson is confirmed as VP of marketing for BMG Entertainment International in the Asia Pacific (Bulletin, May 20), effective July 1. Georgeson, who was director of marketing for Universal Music Group in Australia, will be based in Hong Kong and report to Michael Smellie, senior VP of the region. She succeeds Stuart Rubin, now managing director of BMG New Zealand.


Tower Asia Staffers Move

Bob Kaufman, senior VP/director of operations of Tower Records International Franchises, has relocated from Tokyo to the retail chain's head office in Sacramento, Calif. Kaufman reports to Stan Goman, executive VP/COO of MTS Inc., which owns and operates Tower Records. He will now split some of his previous duties with Keith Cahoon, Tower's senior VP/director of Asian operations. Also moving to Sacramento are the six Tokyo-based Tower Asia staffers, who will work with Kaufman in developing Tower's franchises worldwide.
Tower has 46 franchised stores in Korea, Thailand, Malaysia, the Philippines, Colombia, Ecuador, and Israel. Five more are set to open in the next 10 weeks, and others are planned in the coming year in both existing and new territories.
--Steve McClure, Tokyo


Chancellor Out Of Ad Biz

Chancellor Media has sold its outdoor advertising business to Lama Advertising Co. for $1.6 billion in stock and cash. The move, announced yesterday, comes less than nine months after Chancellor invested $930 million to acquire Whiteco outdoor advertising, putting the radio group among the top five billboard advertisers. The company is now shedding a number of its non-radio properties in an effort to increase its value on Wall Street. The deal comes on the heels of Infinity Broadcasting's $8.3 billion purchase of Outdoor Systems, announced Thursday.
--Chuck Taylor, N.Y.


Denmark's Helmig Inks BMG Pub Deal

Thomas Helmig, the platinum-selling Danish performer/writer, has signed a worldwide publishing deal with BMG Music Publishing Scandinavia. His latest album, "Dream" (RCA), is reportedly approaching double-platinum in Denmark (100,000 unit sales), after a run at No. 1 on the country's chart. In addition to future works, the signing includes Helmig's catalog. Helmig previously published his works through his own company.
--Irv Lichtman, N.Y.


Skint Gets Its Kicks

U.K. indie Skint Records has become the first label to sponsor an English football league team. Skint, home to Fatboy Slim, has signed a shirt sponsorship deal with local team Brighton & Hove Albion.
--Paul Sexton, London


What's On

The 1999 Essence Awards air tonight at 8 ET on Fox, honoring Lauryn Hill, Kirk Franklin, and others.